In the Case of a Negative Externality,the Government Can Use

question 30

Multiple Choice

In the case of a negative externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.In the case of a positive externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.

• A) tax; subsidy
• B) subsidy; tax
• C) tax; tax
• D) subsidy; subsidy

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Definitions:

Percent Increase or Decrease

A quantitative measure expressed as a percentage that represents the magnitude of change in a quantity compared to its previous value.

Financial Statement Items

Components or entries that make up financial statements, including revenues, expenses, assets, and liabilities.

Financial Statement Analysis

The process of evaluating and interpreting a company's financial statements to understand its financial health.

Common Tools

Generic equipment or instruments used across various jobs or tasks, not specialized for any particular profession or activity.